ISO New England warns of gas pipeline constraints while promising adequate power for winter

HOLYOKE -- ISO New England says the region's power system is on track to meet consumer electricity demand this winter, but that certain conditions could present reliability challenges.

The nonprofit independent system operator oversees the six-state power generation and transmission system, manages wholesale electricity markets and undertakes regional system planning.

During the 2017-18 winter season, operations could become challenging "if demand is higher than projected, if the region loses a large generator, electricity imports are affected, or when natural gas pipeline constraints limit the fuel available to natural-gas-fired power plants," said the ISO in a press statement Thursday.

In those instances, the ISO "could be required to implement special operating procedures" to maintain grid reliability. Such procedures could include calling on demand-response resources to reduce their energy use, importing emergency power from neighboring regions, and asking businesses and residents to voluntarily conserve electricity.

Energy consumption has remained flat in New England in recent years, the ISO said, as efficiency measures and behind-the-meter solar power increase. By reducing demand on sunny days, solar can help preserve other fuels for use when demand is peaking.

Concerning natural gas, "a continuing concern involves the availability of fuel for those power plants to generate electricity when needed," the ISO said.

The organization's statement comes as climate activists continue to fight the expansion of natural gas pipelines in New England. A leading pipeline opponent said Thursday that the problem is one of meeting peak demand, and that energy storage paired with renewables can address that problem without building new infrastructure.

"I appreciate that ISO New England is acknowledging that rooftop solar is having a major impact, and is helping to meet energy needs even in the winter," said Kathryn Eiseman, president of Massachusetts Pipeline Awareness Network. "I wish Holyoke's new energy storage facility were going online for this winter, so we could see the renewable/storage model in action."

ENGIE, partnering with Holyoke Gas & Electric, plans the largest utility-scale storage installation in the state, and will integrate a 3-megawatt battery array with its 6-megawatt Mount Tom solar plant. The stored power will be called upon during local and regional peak load periods.

"That is the future of managing winter peak demands, and I'd like to see ISO New England leading the way in incentivizing the deployment of energy storage throughout the region," said Eiseman.

ENGIE, with operations in the U.S. and Canada, imports liquefied natural gas at its Distrigas port terminal in Everett. The company has also made a commitment to renewables and technological innovation, said spokeswoman Carol Churchill.

"Our position remains the same," she said. "It's not efficient to overbuild pipelines to meet peak demand for only 30 days per year, and asking consumers to pay for that. It makes more sense to maximize LNG and battery storage."

She said the region did see expansion of its pipeline infrastructure in 2017, with projects by Spectra and Tennessee Gas adding incremental capacity.

Around half the region's electricity is powered by natural gas, and several new gas power plants are slated to come online by 2020. Meanwhile, large coal and nuclear plants continue to retire.

The Northeast Gas Association, which represents the industry, says gas-fired power plants will remain essential to the New England grid "because this technology is both fast-start and highly-efficient."

Under the ISO's forward capacity markets, generators receive payments in exchange for their promise to meet peak demand three years into the future.

During the upcoming winter, the ISO predicts peak power demand at somewhere between 21,000 and 22,000 megawatts, while promised capacity stands at nearly 31,000 megawatts, leaving a comfortable margin. However, 4,000 megawatts of natural gas-fired generation remains "at risk of not being able to get fuel when needed," ISO New England said.

Thursday's ISO statement made oblique reference to the now-shuttered Brayton Point power plant in southeastern Massachusetts, saying the recent retirement of a 1,500-megawatt coal-and-oil plant "removed a facility with stored fuel that helped meet demand when natural gas plants were unavailable."

The ISO will continue to run its winter reliability program, which provides incentives for power generators to stock up on oil, or contract for liquefied natural gas, during the coldest months.

The winter reliability program was beefed up after the 2014 "polar vortex" caused wholesale power prices to spike due to market shortages of natural gas in New England.

The ISO said this winter's forecasts take into account 1,832 megawatts in energy-efficiency measures acquired through its forward capacity market.